The Broken Window Fallacy States That When a Window Breaks

question 263

True/False

The broken window fallacy states that when a window breaks and someone spends money to repair it, they have created new economic activity that would not have otherwise taken place.

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Definitions:

Viscous Lava Flows

Slow-moving lava flows with a high silica content that are thick and sticky.

Pyroclastic Eruptions

Explosive volcanic eruptions that eject fragmented material, including ash, lava fragments, and volcanic bombs.

Volcanic Mudflows

Rapid flows of volcanic material, consisting of a mixture of water and rock fragments, that move down the slopes of a volcano.

Mantle Plume

A column of very hot rock rising up from deep within the Earth's mantle, believed to cause volcanic hotspots and other tectonic features.